A whale with a lot of money to spend has taken a noticeably bearish stance on McDonald's.
Looking at options history for McDonald's (NYSE:MCD) we detected 20 strange trades.
If we consider the specifics of each trade, it is accurate to state that 40% of the investors opened trades with bullish expectations and 60% with bearish.
From the overall spotted trades, 17 are puts, for a total amount of $788,676 and 3, calls, for a total amount of $135,930.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $210.0 to $255.0 for McDonald's over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for McDonald's's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of McDonald's's whale activity within a strike price range from $210.0 to $255.0 in the last 30 days.
McDonald's Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MCD | PUT | SWEEP | BULLISH | 07/15/22 | $220.00 | $110.7K | 380 | 255 |
| MCD | PUT | SWEEP | BULLISH | 06/17/22 | $220.00 | $79.5K | 2.0K | 43 |
| MCD | CALL | TRADE | BULLISH | 05/27/22 | $230.00 | $67.0K | 2 | 100 |
| MCD | PUT | SWEEP | BEARISH | 06/17/22 | $240.00 | $62.7K | 3.9K | 391 |
| MCD | PUT | SWEEP | BEARISH | 06/17/22 | $220.00 | $57.7K | 2.0K | 591 |
Where Is McDonald's Standing Right Now?
- With a volume of 2,161,755, the price of MCD is down -4.02% at $231.91.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 70 days.
What The Experts Say On McDonald's:
- BTIG has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $280.
- RBC Capital has decided to maintain their Outperform rating on McDonald's, which currently sits at a price target of $295.
- MKM Partners has decided to maintain their Buy rating on McDonald's, which currently sits at a price target of $295.
- Citigroup has decided to maintain their Neutral rating on McDonald's, which currently sits at a price target of $273.
- JP Morgan has decided to maintain their Overweight rating on McDonald's, which currently sits at a price target of $275.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
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